7. Rural Market- Tanveer Aziz Khan

7.1 Introduction:

Bangladesh has made significant strides in its economic sector

since its independence in 1971. Bangladeshi garments industry is one

of the largest and comprehensive industry in the world. Before 1980,

Bangladesh's economy and foreign exchange earnings were driven by

the jute industry. However, this industry started to fall dramatically

from 1970, when polypropylene products gained popularity over the

jute products.

Bangladesh has also made major strides to meet the food

needs of its increasing population, through increased domestic

production. Currently, Bangladesh is the third largest rice producing

country in the world. The land is devoted mainly to rice and jute

cultivation, although wheat production has increased in recent years;

the country is largely self-sufficient in rice production. Nonetheless,

an estimated 10% to 15% of the population faces serious nutritional

risk. Bangladesh's predominantly agricultural economy depends

heavily on an erratic monsoonal cycle, with periodic flooding and

drought. Although improving, infrastructure to support

transportation, communications, and power supply is poorly

developed. The country has large reserves of natural gas and limited

reserves of coal and oil. While Bangladesh's industrial base is weak,

unskilled labor is inexpensive and plentiful.

Rural market has an impact in the economy of Bangladesh.

Because there are huge number of products comes from village such

as paddy, maize, vegetables etc. So it creates a positive impact in the

national economy. Basilcally it’s a linkege between rural people as

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well as urban people. Here our assign village is Dhonokundi East

Para and our assign haat is Chandaikona.

In chandaikona bazar all sort of parties involved such as

buyer, seller and middlemen. But at haat period major parties are

seller and middlemen. Al the paries are inter related to each other.

Chandaikona is famous haat for its surrouding villages as

well as Bogra. Its well structured and organized. Total haat is divided

into two parts. One is retail section that’s the main raod another one

is wholesale section which is situated in school field. This haat held in

twice a week (Saturday and Tuesday)

The infrastructure facility is good in this haat. Electricity is

available and the haat is situated beside the Asian Highway. So the

transportation facilities of that particular haat is good. Basic reason of

conducting the analysis to understand the market structure of rural

haat, the products as well as distribution channels. Its gives us a n

idea about the total communication procedure with the urban market

and their contribution in the national economy.

7.1.1 Objectives:

Idea about economic activities of the villagers.

Products and service available in the market.

Market structure

Distribution channel

Inflow and outflow of products.

Difference between rural market and urban market.

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7.1.2 Procedure:

The total procedure is conducted by PRA methods.

(Performance Rural Appraisal)

7.1.3 Market System:

Communication

Capital

Products

Money

Information

7.2 Market:

Market is a place where all sort of commodities are buy and sell. Total

transection is being held in market. Basically, the set of all actual and

potential buyers of a product and service.( Philip Kotler, Gary

Armstrong)

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FIELD SURVEY WINTER 2005

IndustryA collection of

Sellers

HaatA collection of Buyers

Household

Marketing means satisfying customer needs and wants by selling the

products. It is a social and managerial process by which individuals

and groups obtain what they need and word through creating and

exchanging products and value with others. (Philip Kotler, Gary

Armstrong)

7.2.1 Villege Haat:

Haat is baiscally temporary market. It sits once or twice a week. All

sort of buyers and sellers join there for transecting goods and services

throughout the week. At haat period all producers join there to sell

their products to buyers which comes from different places.

There is another term known as bazaar. It’s a permanent market. Its

sits throughout the year. Daily and retail activites done in bazaar.

So there are some distinction between Haat and Bazaar which are

given below-

HAAT BAZAAR

It is temporary market It is permanent market

It sits once or twice a week It sits throughout the year

It’s a combination of both

buyer and seller.

All kind of entrepreneur are in

bazaar.

Products are send from haat to

thoughout the nation

Product are import from

different location.

7.2.2 About Haat:

Chandaikona is a very famous haat for villegers like

Dhonokundi, Garoi, Boraidaho, Ghoga, Kaliya Kor etc. Its started form

British period. Most of the villeges are situated with 2-5 km area.

There is a Bonik Shomity who takes lease the haat area by 14,00,000

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TK per year. Large number or customers are come to buy and sell

their product.

N

7.2.3 Position of Chandaikona:

w E

S

7.2.4 Location of Retail market and Wholesale market:

Retail Mkt

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CHANDAIKONA

SHIMLAZAPRA

GHASHURIA

SHIMABARISHATURIA

BORAIDAHODHONOKUNDI

GAROI

GHOGA, BETKUNKALIYA KOR

KODLA, VUIYAGATI,SHERPUR,

MECHOPUR,

ASIAN HIGHWAY

GUR

VEGETABLE

SPICES

PADDY

FISH

Road

Wholesale Mkt SCHOOL FIELD

Wholesale Mkt

7.3 Product/Service classification:

PRODUCT:

Anything that can be offered to a market for attention,

acquisation, use or comsumption that might satisfy a want or need its

known as product.. It includes physical objects, services, persons,

places, organizations and ideas. (Philip Kotler, Gary Armstrong)

SERVICE:

Any acitivity or benefit that one party can offer to another that

is essentially intangible and does not result in the ownership of

anything is known as service. (Philip Kotler, Gary Armstrong)

Products are divided into two parts. 1. Consumer products; 2.

Industrial products.

Consumer products: Products bought by final consumer for

personal consumption.

Industrial products: Products bought by individuals and

organizations for future processing or for use in conducting a

business.

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BARBAR SHOP WOODEN FURNITURE & ACCESSARIES

CATTLE

VEGETABLE SPICES

PRODUCT

CONSUMER PRODUCTS

CONVENINENCE

SHOPPING

SPECIALTYUNSOUGHT

7.3.1 Products and Service (available) List:

7.3.2 Inward and Outward products of the village:

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INDUSTRIAL PRODUCTS

CATEGORY GOODS

CONSUMER # CONVENIENCE RICE, SALT, VEGETABLES, DAL, OIL, SPICES, BIRI, CIGARETTE, SOAP, RED CHILI. # SHOPPING CLOTHING, SHARI, LUNGI, GAMCHA, SHOE, SOFT DRINKS, PASTE, POWDER, BRUSH.

# SPECIALTY HERBAL MEDICINE, C.D PLAYER, FURNITURE, COW, GOAT.

# UNSOUGHT CLOTHES FOR KAFON

INDUSTRIAL FERTILIZER, PADDY, PLOUGH, SEEDS PESTICIDESSERVICES BARBER SHOP, VEHICLE RENT SERVICE

Inward products

PaddyVegetableMaizeFishBettle LeafShawlGingerWoodFertilizerClothesPasteSoapMedicineCigarettePesticidesCosmetics

CHANDAI

KONA

Outward products

RicePaddyVegetableMaizeGurCurdFishGreen ChiliPloughWooden Furniture

7.3.3 Value Chain Analysis:

Value chain of Cauli Flower

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Raw Material: Seeds, Fertilizer, PesticidesSources of Fund:Self; Krishi Bank

Cost of Labor:Season:Male 80-100 TKFemale 60-75 TK

Work In process:Preparation of Seed BedIrrigationHarvest

Spending Pattern:Clothing, Food, EducationSavings:Purchase land,

Loan Payment

For Cauli Flower, necessary raw materials are seeds, fertilizer and

pesticides. The farmers collect the money by their own. If the money

does not fulfil the requirement then they have to borrow money from

Krishi Bank. In season the cost of labor is higher than off season. In

season male get 80-100 TK per day where as female get 60-75 TK per

day. In off season male get 50-70 TK per day where as female get 30-

40 Tk per day. Before producing the Cauli Flower they have to

prepare the seed beds first, then they go for irrigation and harvest the

Cauli Flower. After producing the Cauli flower they send it to haat for

sale. Through Mohajon it sends to wholeseller in dhaka. Then

wholeseller sends it in different outlets by which consumer gets the

Cauli Flower. From the farmers point of view they earn 120 TK/40 KG.

After earning they spend most of money for clothing, food and

education. If they have enough money in hand then they purchase

land and pay the loan. It’s a total value chain of Cauli Flower.

7.4 Price:

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Output:CAULI FLOWER

Distribution channel:ProducerMohajonW.sellerRetailerConsumer

Earning from Traders:NI= Selling-Cost = (520-400) Tk/40 Kg = 120 Tk/40Kg

price is the one element of the marketing mix that produces revenue;

the other elements produce cost. Prices are the easiest marketing

mix element to adjust product features, channels and even promotion

take more time. Price also communicates to the market the company’s

intended value positioning of its product or brand. (Philip Kotler, Gary

Armstrong)

7.4.1 Pricing Set:

After producing the products, producers set the price according to

market. They is a Bonik Shomiti who basically sets the price according

to dhaka wholesalers. They add some profit and tax with the cost of

the products. By which they sell their products.

7.4.2 List of pricing of different product and service:

Product Total Cost Selling Price Profit

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Estimation of Costs

Analyzing Competitor cost, prices and other offers like

Deciding the price by Bonik Shomiti

Selecting the final price

Name (TK) (TK) (Approx)

(TK)

IRRI (per Kg) 11-13 16 3-5

Gur (700 gm) 15 18 3

Herbal

Medicine

9 12 3

Rice (per Kg) 12 15 3

Seeds (per

Kg)

6 9-10 3-4

CauliFlower

(per Kg)

10 13-14 3-4

Plough

(Large)

185 200 15

Window (per

piece)

180 190-200 10-20

Door (per

piece)

1050 1200 150

Table (per

piece)

105 115-120 10-15

Cattle 4300-4500 5500 1000-1200

7.5 Selection of place:

Asian highway is near to Haat.

Number of surrounding villages beside Chandaikona Haat.

Financial Condition & Buying Capacity of the surrounding

villages.

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7.5.1 Distribution Channel:

Channel-1 (Rice):

Here producer produce rice and send it to the mohajon of

Chandaikona haat. Then Mohajon sell it to wholesaler of

dhaka(Kawran Bazar & Jatra Bari). Wholesaler carried it away by

their hired or own transportation. Wholesaler send it to different

bazaars of dhaka which finally reach to ultimate consumer.

Channel-2 (Vegetable):

Here producer produce vegetable and send it to Chandaikona haat

where mohajon collect it from producers. Then they send it to

wholesaler of dhaka (Kawran Bazaar). From there vegetable are send

to different outlets of different bazaar where consumer gets the

vegetable.

Channel-3 (Consumer Goods):

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Producer

Mohajon Wholesaler (Dhaka)

Retailer

Consumer

Producer RetailerWholesaler (Dhaka)

Mohajon

Consumer

Manufacturer Agents Retailer

Consumer

Here manufacturer produce the product and they distribute it through

their agents. Agents send it to different retailer in different outlets

where consumer gets their required product.

7.6 Promotional activities:

In Chandaikona haat, most of them use miking to aware about their

products. Some of them give coupon by which people can know about

the different brands of the product. Chain agents give gifts to the

retailer to sell their products.

7.7 Finding of Chandaikona Haat:

Major Finding:

Nakshi Katha: Basically female of Dhonokundi produce Nakshi

Katha. Major customer of this Nakshi Katha are some reknown

retailer such as Arong, Key Kraft etc. The wholesale price is around

1400-1600 Tk(8’*3’’)

Important Findings:

Fishing Project: There are some fishing projects in

Dhonokundi village where produced fish are send directly to

Chandaikona haat.

Vegetables: Different kind of vegetables are send to the

different part of the country. Some important vegetables are Cauli

Flower, Brinjle, Green chili etc.

Post Office: In Chandaikona haat there is a post office which

helps the middlemen to communicate with the wholesalers of Dhaka.

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Poor Quality Medicine: There are some harbal medicine found

in Chandaikona haat which is poor in quality. It is not only harmful

but also causes serious damage human body.

Inflow is more than Outflow: In Chandaikona haat rate of

inflow is greater than rate of outflow. Huge amount of products are

enter in Chandaikona haat where as small amount of products go out

from haat.

7.8 Problems of Chandaikona Haat:

There are some problems in Chandaikona haat which are given

below

Space problem:

The total area of Chandaikona haat is not enough for both sellers

and buyers. In Haat time the place is overcrowed and it makes a huge

chaos at that particular time.

Monopoly of middlemen:

In haat there are large number of producers available to sell their

product. Middlemen basically collect the products and sell it to Dhaka

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wholesaler. They purchase the product at a minimal amount and sell

it in huge amount. So, Producer could not get the money whatever

they deserve For this reason producers become demotivated to

produce products.

Security problem:

Security is the another concerning factor for the producer. Every

now and then they have to pay some sort of tax to different parties.

Otherwise they do not even run the business.

7.9 Recommendation:

The Bonik Shomity should take whole place including school

field. It can easily decrease the load and increase the number of

buyers and sellers.

Bonik Shomity should take some sort of action by which

producers can directly sell their preoducts. Its not only minimize

their cost but also increase their profit margin.

Bonik Shomity should keep some securities in haat area to

control all kinds ofproblems done by differnet parties. They

might hire some policemen for their protection.

7.10 Observation of Case Study:

There are case study of five farmers and five traders. This are given

below—

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Farmers:

F-01

Name: Golzar Hossain

Age: 40 years; Village: South Kodla

Profession: Farmer.

1. What kind of product you cultivate?

Ans: Rice (IRRI)

2. How many years are you in farming?

Ans: Almost 12 years.

3. After cultivating IRRI do you do any other kind of job in off season?

Ans: No

4. Do you have your own land?

Ans: Yes (5 Bighas)

5. Do you invest by our own?

Ans: No.

6. If you collect loan then From where you collect your money?

Ans: Local Mohajon and Krishi Bank

7.Do you get the proper money what you deserve?

Ans: No. Because I sell my crop through middlemen who earns

lots of money but they give us very little amount from it.

8. What sort of problem you face while selling your crop?

Ans: Not much. Basically I found one major problem and that is

middlemens’ power. They buy the crops at a lower price and

they sell it in Dhaka at higher rate. For this reason we couldn’t

get appropriate amount of money.

9. What kind of fertilizer do you use?

Ans: I use cowdung, Uria, Pothashiam etc. as fertilizer.

10. Do you use pesticides?

Ans: Yes.

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11. Do you get enough amount of labor in season?

Ans: Yes.

12. Do you think Labor rate is higher or lower?

Ans: higher.

F-02

Name: Iqbal Hossain

Age: 25 years; Village: Shathiya digor

Profession: Famer


Ans: Seeds like Masturd, Rice, Soya Bean etc.


Ans: 6 years.

3. After cultivating Seeds do you do any other kind of job in off

season?

Ans: No


Ans: Yes (7 Bighas)


Ans: Yes. Through family resources.


Ans: Not Applicable.


Ans: No. Mohajon get maximum profit. I have no other option

to sell my seeds. That’s why I have to sell my seeds to them

though I get less amount what I deserved.

8. What sort of problem you face while selling your seeds?

Ans: No problem.


Ans: Cowdung, Uria, Pothasiam, Zypsum etc.

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Ans: Yes.


Ans: Yes.


Ans: Lower.

F-03

Name: Kala Chad Vush

Age: 48 years; Village: Shaturia

Profession: Farmer.


Ans: Rice (IRRI)


Ans: 18 years.

3. After cultivating IRRI do you do any other kind of job in off season?

Ans: Van driving.


Ans: No. I take Borga from other people.


Ans: Yes. By myself.




Ans: No.


Ans: Bargaining power of buyer.


Ans: Cowdung, Uria, Pothasiam etc.


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Ans: Yes


Ans: Yes.


Ans: Higher.

F-04

Name: Zahirul

Age: 40 years; Village: ShimaBari

Profession: Farmer


Ans: Cauli Flower


Ans: 15 years.

3. After cultivation do you do any other kind of job in off season?

Ans: No.


Ans: Yes. (5 Bighas)


Ans: No.

6. From which source you collect your money?

Ans: Brac Bank and Krishi Bank.


Ans: Almost.


Ans: Transportation problem.


Ans: Cowdung, Uria etc.


Ans: Not required.

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Ans: Yes.


Ans: Higher.

F-05

Name: MD. Zamal Uddin

Age: 52 years; Village: Kaliya Kor

Profession: Farmer.


Ans: Green Chili.

2. How many years are you in cultivation?

Ans: Almost 17 –18 years.

3. After cultivation do you do any other kind of job in off season?

Ans: No.


Ans: Yes (8-9 Bighas)


Ans: Yes. By myself.

6. From which source you collect your money?



Ans: No. Middlemen sucks most of the revenue which we

deserve


Ans: Bargaining power of buyer and transportation problem.


Ans: Cowdung, Uria, Pothasiam, Zypsum etc.


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Ans: Yes.


Ans: Yes. Most of the time.


Ans: Higher then before.

Traders:

T-01

Name: MD. Sorhab Ali

Age: 45 years; Village: Boraidaho

Profession: Trader (Gur)

1. How do you collect the Gur?

Ans: I collect Gur from different people. At haat period there

are huge number of seller available in Chandaikona Haat. From

them I collect Gur.

2. What is the amount of Gur you sell in a day?

Ans: Near 3 to 4 Kg. But at haat period its almost 7-8 Kg.

3. What is the price of Gur?

Ans: 18-19 Tk per 700 gm

4. What sort of problem you faced while collecting the Gur?

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Ans: Basically quality of product. Because Gur vary from

producer to producer. For that reason quality differ at a high

rate.

5. What do you think about the demand of

Gur?(increasing/decreasing)

Ans: Increasing.

T-02

Name: Sholeman Sheikh

Age: 55 years; Village: Roroa

Profession: Trader (Cloths)

1. How do you collect the cloths?

Ans: I collect the cloths from different places such as

shimabari, dhonokundi, Bogra town etc.

2. what is the amount of money you earn in a day?

Ans: near about 175-250 Tk.

3. What are the highest selling cloths in your shop?

Ans: Basically Lungi, Gamcha, Shari and Nokshi Katha etc.

4. What sort of problem do you face while collecting the cloths?

Ans: Transportation Problem.

5. What do you think which items selling demand is increasing?

Ans: Nokshi Katha.

T-03

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Name:Bipul Kumar Das

Age: 43 years; village: Shimabari

Profession: Trader (Herbal Medicine)

1. How do you collect the medicine?

Ans: I collect the medicine from Bogra town.

2. What is the amount of money you earn in a day?

Ans: Near about 70-80 Tk.

3. What are the highest selling medicine in your shop?

Ans: Dater Majon, Molom, Cream etc.

4. What sort of problem do you face while collecting the medicine?

Ans: Quality of medicine is not same all the time.

5. What do you think that which item’s demand is increasing?

Ans: Dater Majon and Molom.

T-04

Name: MD. Ali

Age: 57 years; Village: Shimla

Profession: Trader (Wooden Furniture)

1. How do you collect the wooden furniture?

Ans: From Shimabari, Boraidaho, Dhonokundi, Sherpur,

Shimla, kaliya kor and Bogra town.


Ans: Its around 350-500 taka (at Bazaar time) and 1150-2000

taka (at Haat period).

3. What are the highest selling products in your store?

Ans: Plough, Khaat, Door and window.

4. What sort of problem do you face while collecting the instruments

and furniture?

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Ans: Major problem is transportation.

5. What do you think that which item’s demand is high?

Ans: Plough.

T-05

Name: Robiul Awal

Age: 42 years; Village: Dhonokundi

Profession: Trader (Grosery)

1. How do you collect your grosery products?

Ans: Basically I collect the food items from Bogra town. And

other provided by different distributor.


Ans: Almost 1800-2200 Tk.

3. What are the highest selling products in your store?

Ans: Basically all sorts of mini item such as mini shampoo, mini

toothpaste, mini detergent etc.In cold drinks Virgin and Pran

are the highest selling cold drinks.

4. What sort of problem do you face while collecting the products?

Ans: No Problem.

5. What do you think that which item’s demand is high?

Ans: Many things such as Virgin, Pran, Tibbat, Keya soap,

Molla salt, Eliphant King Coil etc.

7.11 Concluding Part:

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Dhonokundi village is one of the developing village in Bogra. The

Market structure of ChadaiKona Haat is also developing. If the

government and private sectors entrepreneur can take proper steps

then the market can become vital role in the economy. Government

should take initiative to help farmer as well as traders. After analysis

the situation of Chandaikona haat basically traders playing leading

role in market. They are rolling over farmer and skimming out the

maximum profit with the invest of minimum amount. For that reason

farmer does not get appropriate money and remain poor.

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7. Rural Market- Tanveer Aziz Khan

Documents

highest selling

kaliya kor

asian highway

herbal medicine

items demand

wooden furniture

dater majon

case study